Atal Pension Yojana Calculator - APY

Calculate your monthly contribution for guaranteed pension of ₹1000 to ₹5000

APY Calculator

APY is available for ages 18-40 years
Government contributes ₹1000 annually for eligible subscribers
For government co-contribution eligibility (below ₹2 lakh)
Expected return rate for APY investments

Age-based Quick Selection

APY Calculation Results

Monthly Contribution Required
₹210
Annual Contribution
₹2,520
Total Contribution (Till 60)
₹88,200
Government Co-contribution
₹5,000
Guaranteed Monthly Pension
₹3,000
Pension Period
Age 60 to Death
Years to Retirement
35 Years
Spouse Pension (50%)
₹1,500

APY Benefits

  • ✓ Guaranteed pension amount
  • ✓ Government co-contribution (eligible)
  • ✓ Life-long pension
  • ✓ Spouse pension after death
  • ✓ Tax benefits available

APY Investment Analysis

APY Monthly Contribution Table

Atal Pension Yojana Key Features

Scheme Details

  • Entry Age: 18-40 years
  • Pension Age: 60 years
  • Pension Options: ₹1,000 to ₹5,000 per month
  • Guarantee: Government guaranteed pension
  • Investment: Market-linked with guarantee

Benefits

  • Government Co-contribution: ₹1,000 per year for 5 years
  • Spouse Pension: 50% pension after subscriber's death
  • Return of Corpus: To nominee after both deaths
  • Tax Benefits: Under Section 80CCD
  • Exit Option: Available with penalty before 60

Atal Pension Yojana Calculator Guide - APY Retirement Planning

What is Atal Pension Yojana (APY)?

Atal Pension Yojana (APY) is a government-backed pension scheme launched in 2015 under the National Pension System (NPS) architecture. It provides guaranteed pension to subscribers between ₹1,000 to ₹5,000 per month after age 60, making it an ideal retirement planning tool for the unorganized sector.

APY Key Features and Benefits

  • Guaranteed Pension: Fixed monthly pension amount assured by Government of India
  • Government Co-contribution: ₹1,000 per year for 5 years for eligible subscribers
  • Spouse Pension: 50% of pension amount to spouse after subscriber's death
  • Return of Corpus: Accumulated pension corpus returned to nominee
  • Tax Benefits: Contributions eligible for deduction under Section 80CCD
  • Flexibility: Multiple pension options from ₹1,000 to ₹5,000

APY Eligibility Criteria

  • Age Limit: 18 to 40 years at the time of joining
  • Citizenship: Indian citizen with valid Aadhaar card
  • Bank Account: Savings bank account with auto-debit facility
  • Mobile Number: Registered mobile number for communications
  • Income Limit: No income limit for general category
  • Co-contribution Eligibility: Annual income below ₹2 lakh

APY Monthly Contribution Structure

Entry Age ₹1,000 Pension ₹2,000 Pension ₹3,000 Pension ₹4,000 Pension ₹5,000 Pension
18 Years ₹42 ₹84 ₹126 ₹168 ₹210
25 Years ₹70 ₹140 ₹210 ₹280 ₹350
30 Years ₹116 ₹231 ₹347 ₹462 ₹577
35 Years ₹196 ₹392 ₹588 ₹784 ₹979
40 Years ₹340 ₹680 ₹1,020 ₹1,360 ₹1,700

Government Co-contribution Scheme

  • Eligibility: Subscribers with annual income below ₹2 lakh
  • Contribution Amount: ₹1,000 per year for 5 years
  • Total Co-contribution: ₹5,000 over 5 years
  • Conditions: Regular contributions and income certification required
  • Auto-enrollment: Available for Jan Dhan account holders

APY Investment and Returns

  • Investment Strategy: Conservative allocation (15% equity, 85% debt)
  • Fund Management: By PFRDA empaneled fund managers
  • Expected Returns: 8-10% annually over long term
  • Guarantee Mechanism: Government covers shortfall if returns are lower
  • Excess Returns: Benefit shared with subscribers if returns are higher

APY vs Other Pension Schemes

Feature APY NPS EPF
Entry Age 18-40 years 18-65 years No limit
Pension Guarantee Yes No No
Government Co-contribution ₹1,000/year Varies 12% by employer
Minimum Contribution ₹42-1,700/month ₹6,000/year 12% of salary
Target Group Unorganized sector All citizens Organized sector

APY Exit and Withdrawal Rules

  • Normal Exit: At age 60 with guaranteed pension
  • Premature Exit: Allowed with penalty and loss of guarantee
  • Death Benefit: Spouse gets 50% pension, then corpus to nominee
  • Disability: Corpus returned if permanent disability
  • Default: Account closure after 6 months of non-payment

How to Open APY Account

  1. Visit bank branch or online banking portal
  2. Fill APY enrollment form with Aadhaar details
  3. Provide auto-debit mandate for monthly contributions
  4. Choose pension amount (₹1,000 to ₹5,000)
  5. Submit required documents and verification
  6. Receive PRAN (Permanent Retirement Account Number)

APY Tax Benefits

  • Section 80CCD(1): Deduction up to 10% of income or ₹1.5 lakh
  • Section 80CCD(1B): Additional ₹50,000 deduction for NPS
  • Section 80CCD(2): Employer contribution up to 10% of salary
  • Pension Income: Taxable as per income tax slab
  • Lump Sum: 40% tax-free, 60% for annuity purchase

Who Should Invest in APY?

  • Unorganized Sector Workers: Without employer-sponsored pension
  • Self-employed Individuals: Seeking guaranteed retirement income
  • Low-income Groups: Eligible for government co-contribution
  • Risk-averse Investors: Preferring guaranteed pension over market risk
  • Young Professionals: Starting early for lower contribution burden

APY Investment Strategies

  • Start Early: Join at 18 for minimum monthly contribution
  • Regular Payments: Maintain consistent contributions to avoid penalties
  • Income Planning: Ensure income stays below ₹2 lakh for co-contribution
  • Family Coverage: Both spouses can have separate APY accounts
  • Supplementary Planning: Combine with other retirement products

Common APY Mistakes to Avoid

  • Late Joining: Delaying enrollment increases monthly contribution
  • Inadequate Pension: Choosing lower pension amount without inflation consideration
  • Irregular Payments: Missing contributions leads to penalties
  • Income Misrepresentation: Incorrect income declaration for co-contribution
  • Premature Exit: Exiting before 60 without valid reasons

Pro Tip: Use our APY calculator to determine the optimal pension amount and contribution based on your age and income. Starting early significantly reduces your monthly contribution burden while ensuring a comfortable retirement with guaranteed pension income.